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USDA Backs Removal of 420,000 California Peach Trees After Del Monte Cannery Closures

Federal aid aims to cut oversupply to blunt grower losses.

Overview

  • Central California growers will remove up to 420,000 clingstone peach trees with up to $9 million in USDA funding ahead of the 2026 harvest.
  • Del Monte’s Chapter 11 bankruptcy led to permanent cannery closures in Modesto and Hughson, ending long-running contracts and cutting off a major processing outlet.
  • Pacific Coast Producers bought Del Monte’s canned fruit business and will purchase about 24,000 tons of peaches, leaving roughly 50,000 tons without a buyer.
  • USDA analysis says taking about 50,000 tons out of production could prevent around $30 million in losses as farmers face an estimated $550 million revenue hit.
  • Growers plan to pivot some orchards to other crops with the removal aid, and canned peaches are still expected to be available on store shelves for now.